MAI and Cryptovalley Malaysia ink agreement on Blockchain Technologies for Enhanced Consumerism, Entrepreneurship and Environmental Conservation
The Malaysia Automotive Institute (MAI) and Cryptovalley Malaysia (CVM) today signed a Memorandum of Agreement (MoA) to initiate Blockchain technology applications in the automotive sector. The MoA serves as an enabler to the recently launched National Policy on Industry 4.0 (Industry4WRD).
Blockchain Technology – a brief introduction
Blockchain technology, is an open, digital ledger of transactions (called blocks) that are shared through peer-to-peer networks over the cloud. Using cryptography technology, these “blocks” cannot be contaminated, and users are able to update or store records of any value along the peer-to-peers network chain.
This “decentralisation” of ownership separates blockchains from common data management systems, with no central authority owning these blocks of data. This means such data is maintained by a community of peers to preserve the value and integrity of the said data.
Application of blockchain technology
The decentralisation of blockchain data changes the way business transactions and asset management are performed and finds its way into changing the way day-to-day activities can be conducted, through a reduced number of intermediaries or mediators.
The data flow is highly automated, traceable, uncontaminated, transparent and secure. The applications for blockchain technology show tremendous potential within automotive applications, such as the management of autonomous vehicles and advanced driver assistance systems (ADAS), infrastructure logistics, vehicle and smart city management, integrated transport systems as well as smart grids for sustainable energy management.
MAI and CVM to develop Four (4) Immediate Initiatives through MoA Signing
The collaboration between MAI and CVM will prompt four (4) immediate initiatives that will benefit the consumers, entrepreneur and environment. These initiatives are:
I. Ensuring proper distribution of original spare parts
To create digital identities to ensure genuine spare parts are properly circulated within the Automotive ecosystem. The value of the spare parts will be ascertained by the community to ensure prices of spare parts conform to market standards – ensuring safety and protection of consumer interests.
II. Providing alternative e-hailing platform for taxi transformation
Decentralised blockchain technology will bring benefits to the ride-sharing market in the area of security, transparency and also provide immutable evidence during dispute resolutions. Passengers also stand to benefit through the wider driver networks, receive additional tokens through consumer based recommendations and enhance the vetting of drivers within the network.
III. Introducing Reputation Economics 2.0 for After Sales and Service Sector
An ecosystem in which the After sales and Service sectors are based on the decentralized online ratings by end users. These ratings enhance the customer experience through better quality comparisons, through a user-driven database structure applicable to many areas within the After Sales and Service sectors.
IV. Reducing the carbon footprint of commercial vehicles
Creating unique digital profiling for commercial vehicles, allowing enhanced carbon footprint calculations through the application of blockchain technology. This is in line with the promotion of Energy Efficient Vehicles (EEV) in line with National Automotive Policy (NAP).
Developing critical mass of talent in cryptography technology
Apart from the initiatives above, the MoA serves as a stepping stone for the development of an expert pool in cryptography technology in Malaysia, through the establishment of specific programs for the automotive community to plan, implement and manage blockchain technology within their respective fields.
“MAI and CVM will collaborate to develop the Cryptography Experts Development Programme, allowing the utilisation of enterprise blockchain architecture for the research and application of blockchain technology within the automotive, IoT and Robotics sectors”, said Dato’ Madani Sahari, MAI CEO.
He further explained that these programmes will enable real-time monitoring, auditability and scalability for the aforementioned sectors in the applications of connected vehicles, cybersecurity, smart manufacturing and autonomous driving.